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Spain is facing more and more regulations regarding tourist rental properties. Earlier this year, the rules were already tightened in the autonomous regions to which the Costa Brava and Costa del Sol belong, and now a very important change has also been made in the Comunidad Valenciana, the autonomous region to which Costa Blanca and Valencia belong. In this blog everything you need to know.
New law for rentals to tourists in the Valencia region
- All rentals shorter than 11 days are considered tourist rentals
Rentals of 11 days or longer are classified as seasonal rentals and are not covered by this law.
- Tourism licenses are valid for 5 years as per new law
After that, they must be renewed again for 5 years. The renewal must be submitted to the municipality no later than one month before the end of the 5-year term, and the municipality will re-evaluate the application.
- New applications require a statement from the Homeowners Association
New applications submitted after August 2, 2024 require a statement from the Homeowners Association stating that tourist rentals are allowed. For existing situations ( from before August 2, 2024), this is not required.
- A property may only be rented out to tourists as a whole
Renting out per room is not allowed.
- Cadastral reference on official documents and contracts
It is important to include the cadastral reference on official documents and contracts.
- A new application must be submitted in the event of a change
In case of renovation, new construction, sale, donation or inheritance, a new application for tourist rental must be submitted for the property in question.
- Combination rentals not permitted
If you have a property that you rent out to tourists, you are not allowed to rent out the property for other types of rentals, such as medium or long-term rentals.
- Rent out within 2 months
After obtaining your tourist rental license, you must start the rental within 2 months, otherwise the license will expire.
What are the legal requirements for a tourist rental property?
In addition to the above guidelines, the home itself must meet some basic characteristics as well.
- There should be an evacuation plan on the inside of the front door.
- An elevator must be provided for a building with 4 or more floors.
- Power outlet(s) in all rooms.
- Hot water supply available.
- A list of emergency and important phone numbers in a visible place.
- Cooling (at least in the living room/dining room or kitchen).
- Heating (at least in the living room/dining room or kitchen).
- Internet connection, unless the home is in an area without coverage.
- First aid kit.
- Detailed information on the nearest medical center.
- Key service. Delivery of keys through lockers on public roads is prohibited.
- A cleaning service must be used
- Linen should be changed on a regular basis.
- Repairs and maintenance must take place on a regular basis.
What should be a minimum presence in a tourist rental property?
- Refrigerator
- Iron
- Oven/microwave
- Extractor
- Minimum 2-burner electric cooktop (homes for up to 4 people*).
Fines for non-compliance
The new law institutes fines for failure to follow the new law, ranging from €10,000 to €600,000, depending on the severity of the offense. Fines can be imposed for failure to correctly state the exact location and registration details of the property in advertisements, failure to report property transfers, or illegally offering tourist rental rooms.
Existing tourist rental licenses
The new law is in effect as of August 2, 2024. There are three types of transitional arrangements for existing rental licenses:
- For properties licensed before July 1, 2018: These may keep their license without adjustments.
- For homes licensed between July 7, 2018 and introduction of new law: These may keep their license, but must meet new requirements within five years and renew their approval before 2030.
- For new homes after the new law is introduced: These must meet the new rules immediately and renew their approval and other paperwork every five years.
Why this new law for tourist rental?
The new law aims to balance tourism with livability for local residents. Tourism figures reached record numbers in 2023 and 2024. With this law, they want to make sure that tourist rentals are done in an organized way so that it remains balanced with other types of tourist accommodations. This ensures a sustainable and quality supply.
In addition, the law helps combat unfair competition from people who rent out their homes illegally. These illegal rentals harm the regulated tourism industry and escape government control. It also leads to black money circulation and can cause conflicts with local residents. The law protects the compliant tourism industry, thereby countering unfair competition.
Rental for 11 days or more
The above guidelines refer specifically to the new law introduced for the autonomous region of Comunidad Valenciana. This is where they mention tourist rentals for anything 10 days or shorter. Of course, this also provides opportunities for medium-term rentals, which is now from 11 days to 11 months. No specific license is needed for this. The same, of course, applies to long-term rentals from 11 months.
Want advice on what is interesting in this market now as an investment and/or rental? Feel free to contact us.
